NEW YORK, US - SMARTPHONES will become increasingly affordable as more people see them as a necessity rather than a luxury, a study has found.

According to ABI Research forecasts reported in PC World, 27 per cent of smartphones available on the market this year retail at under US$200 (S$280).

This compares with 18 per cent in 2007.

By 2014, 45 per cent of the smartphones shipped that year will be priced below US$200.

This, said PC World, highlighted a rapid attitude change in many consumers towards smartphones, as well as a shift in sales and marketing strategies by mobile-phone vendors and telcos.

"Nearly all consumers used to choose handsets based on the physical characteristics of the hardware, not the software inside," said PC World, quoting ABI mobile devices-practice director Kevin Burden.

"The iPhone changed that. More users are now shopping for their handset based on the operating system and software, which is something once thought to be very unlikely."

As a result, more smartphones are priced in similar ranges as conventional mobile phones, said PC World.

In some markets, mobilephone operators offer heavy subsidies to smartphone purchases and this strategy further lowers their prices.

With the exception of some high-end concept phones, smartphones are increasingly being sold at subsidised prices to generate higher sales volumes, said PC World.

According to ABI Research, the biggest increase in smartphone shipment volumes over the next five years will be found in those within the US$100 to US$200 range.

Said Mr Burden, as quoted in PC World: "Prices will hold at a certain point. We may never see a US$30 smartphone, but over time, smartphones will take a substantial part of the mainstream handset market."

For more my paper stories click here.